Question 1

Hamza receives $61,000 a year as a manager. What is this type of compensation called?

Accepted Answer

Hamza's compensation is called a salary, which is a fixed amount of money paid to an employee on a regular basis, usually annually or monthly. Bonuses, on the other hand, are additional payments given as a reward for good performance or as an incentive to achieve certain goals. Benefits refer to non-wage compensations such as health insurance, retirement plans, and vacation pay. Time wage is a type of compensation where an employee is paid a certain amount of money for each hour worked.

Question 2

On your first day at a new job, you spend some time with the HR manager learning about health insurance options and filling out information for payroll. You are currently going through which process?

Accepted Answer

Orientation is the process of introducing new employees to their job roles, the company culture, and the policies and procedures. This often includes filling out necessary paperwork such as health insurance and payroll information. Training is the process of providing new employees with the skills and knowledge they need to do their job, which typically occurs after orientation. Selection is the process of choosing the best candidate for the job, which has already been completed if the individual is starting their first day. Screening is the process of reviewing resumes and applications to narrow down the pool of candidates to be considered for selection.

Question 3

You work at a fast food chain and are paid $10 per hour. What is this form of compensation called?

Accepted Answer

Wages refer to a payment made to an hourly worker, which is the case for someone working at a fast food chain who is paid $10 per hour. Salary is a fixed payment made to salaried employees on an annual or monthly basis. Commission is a payment based on a percentage of sales and is typically reserved for sales positions. Incentives refer to additional compensation or rewards offered to employees for meeting certain goals or performance targets.

Question 4

After selecting your top three candidates, you ask HR to call the applicants' former employers to learn about how well the candidates performed in their previous jobs. This describes which step in the recruiting process?

Accepted Answer

Checking references is the step in the recruiting process where HR calls the applicants' former employers to learn about their performance in previous jobs. Comparing candidates is the step where the HR team assesses the qualifications and experience of each candidate to determine which is the best fit for the position. Screening candidates is the initial stage of the recruiting process where the HR team uses various methods to assess the suitability of each candidate, such as reviewing resumes and conducting phone interviews. Finally, attracting a candidate pool is the step where the HR team promotes the job vacancy to attract potential candidates.

Question 5

After looking at résumés, the hiring committee you are on ranks the candidates based on their qualifications and then decides which ones to contact for interviews. This describes which step in the recruiting process?

Accepted Answer

This step is referred to as "screening candidates," which involves reviewing résumés and applications to determine which candidates meet the basic qualifications for the position. The hiring committee then ranks the candidates based on their qualifications and decides which ones to contact for interviews.

Question 6

Tuition reimbursement and free childcare are a form of which of the following?

Accepted Answer

Tuition reimbursement and free childcare are both examples of non-monetary compensation, which refers to benefits provided to employees that are not in the form of cash or direct payment. Non-monetary compensation is often used as a way to attract and retain employees, as it can offer valuable perks that employees may not be able to get elsewhere.

Question 7

As a recent college graduate, you have two job offers to consider. The first one comes with a salary of $50,000, health benefits, an RRSP, and two weeks of paid vacation. The second offer comes with a salary of $45,000, health benefits, an RRSP, paid vacation, profit sharing, and a generous bonus plan. You decide to accept the second offer because the addition of which of the following made the job more appealing?

Accepted Answer

The second offer includes additional incentives such as profit sharing and a generous bonus plan, which can potentially result in higher overall earnings. While the salary is slightly lower than the first offer, the added incentives make the job more appealing.

Question 8

During which stage of hiring are employees taught how to do their job or do it better?

Accepted Answer

During the training stage of hiring, employees are taught how to do their job or do it better. Screenings are the initial phase of hiring where applicants are narrowed down. Orientation typically involves introducing new employees to the company culture and procedures. Development refers to the ongoing process of improving an employee's skills and knowledge for future roles.

Question 9

Sam was hired as an operations supervisor and receives tuition reimbursement for pursuing his master's degree. What is this portion of his compensation package called?

Accepted Answer

The portion of Sam's compensation package related to tuition reimbursement falls under the category of benefits. Benefits are non-wage compensation that companies offer to employees, such as healthcare, retirement plans, and tuition reimbursement.

Question 10

During which of the following are you given your ID badge, computer login information, and a copy of the employee handbook?

Accepted Answer

Orientation is the process of introducing new employees to the organization and providing them with basic information about policies, procedures, and benefits. This is where employees typically receive their ID badge, computer login information, and a copy of the employee handbook. Training is a later step in the process, where employees receive specific job-related instruction. Selection is the process of choosing the best candidate for a job, and development typically refers to ongoing training and education opportunities for employees already on the job.

Question 11

Your company just started offering a profit-sharing plan, which could increase your total compensation by as much as 25% if the company does well. This form of compensation is classified as which of the following?

Accepted Answer

Profit-sharing is a form of incentive compensation, as it is designed to motivate employees to work harder and increase company profits. A salary is a fixed payment for work, a benefit is a non-cash compensation such as health insurance, and a commission is a percentage-based payment for sales.

Question 12

While performing background checks on your top three candidates, you find that one of them has a criminal record that she did not disclose on her application. As a result, she is eliminated from consideration for the job. This describes which step in the recruiting process?

Accepted Answer

The answer of While performing background checks on your top...

Question 13

Which of the following involves the process of determining the relative worth of various jobs in a firm?

Accepted Answer

Job evaluation involves the process of determining the relative worth of various jobs in a firm, based on factors such as the job's responsibilities, required skills and knowledge, and level of complexity. This information is used to create a job hierarchy and establish fair and competitive wage rates for each position. Wage structure is the system used to determine the actual pay levels for different jobs, while job description and job specification are related but distinct components of job analysis.

Question 14

Peggy is a hiring manager for Amazon. After a recent job posting, she received over 100 résumés. Peggy is now reviewing the résumés to see if there are any candidates that don't meet the minimum qualifications for the job. Peggy is in which stage of the recruitment process?

Accepted Answer

Peggy is currently screening candidates to see if they meet the minimum qualifications for the job, which is a key component of the screening stage of the recruitment process.

Question 15

Your company offers three different health plan options as well as vision and dental insurance. What is this portion of your compensation called?

Accepted Answer

This portion of compensation is called a benefit, as it is an additional non-wage compensation provided by the employer to the employee. The three health plan options, vision insurance, and dental insurance are all benefits designed to promote the health and wellbeing of employees, and are commonly offered as part of a comprehensive benefits package. Commission, incentive, and bonus are all types of compensation that are typically tied to an employee's performance, while benefits are more broadly available to all employees.

Question 16

Forms of indirect compensation such as vacations, dental insurance, and pensions are part of which of the following?

Accepted Answer

Indirect compensation like vacations, dental insurance, and pensions are referred to as fringe benefits.

Question 17

Many computer programmers make $115,000 per year or more, and they sometimes have multiple companies bidding for their services. As HR manager for a software development firm, you want to attract the best candidates while keeping employment costs from increasing to unsustainable levels. If your competitors offer starting salaries of $115,000, which of the following is your best strategy?

Accepted Answer

Increasing starting salaries to a level significantly higher than competitors' salaries is not a sustainable strategy for managing employment costs. Offering a 30% cash bonus on top of a competitive salary, as in choice C, may also prove unsustainable. Option D, offering a competitive salary of $115,000 along with a generous array of non-monetary benefits such as flexible work hours, remote work options, comprehensive health insurance, 401(k) matching, and other perks, can help attract top talent while keeping costs manageable.

Question 18

During orientation for your new job, you find out that the company offers both RRSP contributions and employee stock ownership plans. What is this portion of your compensation called?

Accepted Answer

RRSP contributions and employee stock ownership plans are both considered part of an employee's benefits package.

Question 19

As a new manager at a department store, you are excited to learn that you may receive a bonus if everyone in your department reaches their sales goals for the quarter. A bonus is considered which type of compensation?

Accepted Answer

A bonus is a form of incentive compensation, which is paid to motivate employees to achieve specific performance goals. It is designed to reward employees for their performance and to encourage them to continue working hard to achieve even better results. While salaries and wages are fixed and do not vary based on performance, incentives like bonuses are variable and depend on how well employees perform. Benefits are a different type of compensation that are often offered to employees as a way to provide additional security and financial support, such as healthcare or retirement savings plans. Commission is a form of variable compensation that is generally paid to salespeople based on the amount of sales they generate.

Question 20

Which of the following is a type of compensation that gives employees some percentage of how much they sell or produce?

Accepted Answer

Commission is a type of compensation where employees get a percentage of how much they sell or produce. A bonus is typically a fixed amount of money given to employees for meeting certain goals or accomplishments, while profit sharing is a distribution of a company's profits among employees. Salary is a predetermined amount of money paid to an employee on a regular basis, typically monthly or bi-weekly. Therefore, the best choice for the given question is C) commission.

Quiz 9: Attracting and Retaining the Best Employees